Posts Tagged ‘Wall Street Journal’

National Building Code with Green Building Implications on Horizon?

On January 12, 2010 Author By Scott Wolfe Jr        

Late in 2009, the Wall Street Journal reported that the U.S. Congress in considering a national building code.   The national building code wouldn’t necessarily interfere with a state or county’s general building regulations, but would instead focus almost exclusively on setting national green building benchmarks.

Some have celebrated the idea of a national building code addressing sustainability goals for the country, others have condemned it, and still more have suggested that the proposal does not go far enough.

While the bill at question has passed the U.S. House of Representatives, the Senate has yet to really consider it, and so the idea of a national building code isn’t quite “on the horizon.”    I’m confident that before a national building code gets rolled out of Congress, a huge ideological fight between Republicans and Democrats will ensue…and we haven’t seen that yet.

However, the fact that it’s in a bill that has passed the U.S. House is significant.  The idea of having sustainable building requirements in private construction has obvious support, and so builders, developers and architects can expect this idea to stick around for a while.   It may not manifest in a national building code…but it may manifest in local codes, and who knows, maybe it will slip through the Senate without much controversy and be on its way to law as we approach 2011.

Stay tuned.

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WSJ Reports Money Coming for Government Green Building Work…Just Not Yet

On January 5, 2010 Author By Scott Wolfe Jr        

Just before Christmas, the Wall Street Journal published an article about how “Green Builders [are] Awaiting The Green.”

The article simply reminded us (and builders across the country) that the General Services Administration had until the end of 2009 to allocate $2 billion for green building construction projects.   And another $3.5 billion is waiting for distribution in 2010, as per the America Recovery and Reinvestment Act.

That’s the good news for green buildings.

The bad news?   The GSA is having trouble spending  the money.

The excuse is legitimate.  First, public projects generally move slower than private ones, and the slow movement on projects has resulted in most GSA funded projects being stuck in planning phases, leading to low-spending.   Second, bids are coming in lower than expected.

While this spells bad news for public contractors in 2009…it is a relief that 2009 is over (and good riddance).   The GSA has some extra cash burning a whole in its pocket, and more money to spend.   Hopefully, these public projects will get underway and more green building will ensue…and that it will happen in Louisiana.

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Will The Health Care Bill Hurt Small Contractors?

On December 23, 2009 Author By Scott Wolfe Jr        

At the eleventh hour, the U.S. Senate added a provision to the controversial health care bill pending in Congress that has the construction industry on edge.    The Associated General Contractors of America released a statement on their website complaining that “without debate or advance notice, language was added to the Senate health care legislation that singles out small construction firms for harsher treatment than any other industry.”

What is the rub?

Well, while employers with less than 50 employees are typically not required to provide health care coverage, the exemption for construction firms is only those with less than 5 employees!   Failing to provide health care coverage could subject the construction firm to fines.

The Wall Street Journal is running a great article about the construction industry’s reaction to the recent addition to the Senate bill.

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39.8 Million Reasons Builders Need To Be Concerned about Chinese Drywall

On July 14, 2009 Author By Scott Wolfe Jr        

Last week, the Wall Street Journal reported that powerhouse builder Lennar Corp. has identified 400 homes in Florida with Chinese Drywall, and has set aside $39.8 million to repair the homes.

This is an enormous amount of money, and it should be a wake-up call to builders and homeowners who have yet to clash over the Chinese Drywall saga.

Would Lennar Co. really spend $39.8 million to repair a problem that wasn’t its fault?  Or of which it didn’t have liability?

The answer is obvious, and here is the wake-up call.   To homeowners:  Seek remedy from your builders.   To builders:  Prepare to be sued.

Indeed, time is continuing to tick without an onslaught of suits between builders and homeowners, but one has to believe that this is only a matter of time.  Time, however, is on neither party’s side.

Homeowners are facing steadfast deadlines in any warranty claims made, or claims in redhibiation.   If they wish to seek damages from any insurer (theirs or the home builders), they are likely facing quickly approaching deadlines.

Builders have deadlines themselves.   Once they are sued by homeowners, builders will necessarily turn to their insurance companies and suppliers for reimbursement or indemnity.   These suits also have impending statutes of limitations, and questions will loom as to whether the builder successfully mitigated its damages.

Lennar Corp. has been a leader among builders from the get-go on the Chinese Drywall problem.

As Chinese Drywall reports became widespread, Lennar Corp. had already begun examining the problem, replacing faulty drywall, relocating residents, and asserting claims against its subcontractors, suppliers and insurance policies.

Lennar Corp. has a lot of liability in this Chinese Drywall crisis, but in the end, they will likely have a lot of protection.   That is due to their foresight and good management of the situtation.

Can the same be said for your company?

This article was originally posted on Wolfe Law Group’s topic-specific Chinese Drywall Blog.

Posted in:     Chinese Drywall  /  Tags: , , , ,   /   Leave a comment

China Speaks Out on Drywall Issues

On March 31, 2009 Author By Scott Wolfe Jr        

It was really only a matter of time.

The Wall Street Journal’s “China Journal” has translated an article written in Chinese that provides us with some insight into how the U.S.’ Chinese Drywall crisis is playing out in Chinese media.

The verdict?   They blame America.

According to the report, China is simply confused (and I’m paraphrasing) that Knauf Plasterboard could supply 75% of the drywall for the Beijing Olympics and over a million tons of drywall to countries around the world in 2006 and 2007, yet only receive complaints from the United States.

Xu Luoyi, the head of the National Building Materials Industrial Technology Supervisory Research Center (real organization) offered this potential explanation:

It’s worth considering why this problem has only emerged in the United States.  The U.S. credit crisis has caused the real estate market to collapse, and as a result domestic drywall manufacturers have seen their sales suffer and their product is relatively expensive compared to the Chinese-made drywall, so we should also consider these issues.

Cryptic quote from Xu Luoyi, but the commentary does offer a perplexing thought:  Why is the United States the only ones complaining?   Is it a climate issue?  Is it because we’re more litigious than other countries?   Or did we coincidentally get the only contaminated drywall?

It is important to note that the concern from China (and its defensiveness) comes at the heels of 2 U.S. Senators proposing federal legislation to put a hold on certain Chinese imports.

Posted in:     Chinese Drywall  /  Tags: , , ,   /   Leave a comment
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